Story time on Story Telling and Selling!!

Lets talk about Diamonds, Scarcity, and how people buy a STORY, not the object

1870-Massive diamond miners are discovered in South Africa

Diamonds going from being rare to being a surplus gem stone overnight
The British Financiers behind the mines know the diamond market will collapse if they don't do something about this

So they decide to take control of the ENTIRE diamond supply worldwide, a total monopoly that controls every aspect of operation
1888-De Beers Consolidated Mines, Ltd. is formed

They now control the entire global trade, and they can artificially limit the supply (and price)

This is successful for awhile. Diamonds are considered a luxury item for the Ultra rich, but then...
WWI happens, and then tension builds up towards WW2,

European economies havent recovered fully

Diamond demand is down

De Beers knows they need a fresh market, and they need to sell diamonds like they've never been sold before
1938-Philadelphia ad agency N.W. Ayer is hired by De Beers

they do extensive market research and brainstorming

Diamonds are still an ultra luxury item that few people can afford

How can they get middle and lower income consumers buying diamonds?
They create a campaign, not on "hard selling" diamonds of course

But on changing the publics psychology/towards diamonds

They Story Sell, and use every kind of artistic medium
Celebrities talk about their diamond engagement rings

Jewelry is worn by the movie stars on the red carpet

"ads" are done that dont sell anything, but tell how you select a diamond IF you are going to buy one

Diamonds are incorporated into high fashion
One masterstroke is the "1 month's" salary

Articles are written in womens magazines talking about how to know a man LOVES you when he asks to marry ou

The engagement ring should be worth ONE month of his salary

this appeals to all levels of consumers
This is truly masterful advertising

You are being "sold" nothing

You are being exposed to an idea, and overtime that idea is incorporated into your psyche

You think you want things because YOU want them

That idea was put into you
1938-1941

Diamond sales are up 55%

De Beers is making gangbusters, N.W. Ayer is making money, life is good

But you can always do MORE

The ad campaigns step up even more after WWII

The USA is now the world premier Superpower

Whats the next level?
1948-"Diamonds are FOREVER"

Frances Gerety was the Woman who wrote ALL of De Beers ads between 1943 and 1968

She's in bed one night, and the slogan hits her, she writes in on a napkin

In the morning, she presents it in a meeting

The rest is history
Diamonds are Forever takes off like nothing before it.

The USA post WWII is booming, the Greatest Generation is getting married, their values of fidelity, loyalty, and hard work perfectly align with the marketing campaign of true love lasting "Forever"
In the 1930s, 10% of engagement rings were diamonds

By the 1980s, its 80%

In the mid 1980s, during the boom years, the campaign was revised for TWO months salary

in the years since, this has become the accepted "cost" of what an engagement ring should be
Lessons from this?

Its not the gem the person buys. Its the story behind the gem. Its the romance

People do not buy anything they are "sold".

They buy what they WANT

This is lesson #1 from Jerry Weintraub

"Give everything a name, and give everything you name a story"